The Indian Economy has continued to show strength through the first half of the financial year, 2025, with an expected GDP growth of 6.7% to 6.9%.
The recent cut in GST rates before the festive season has added a much-needed sense of optimism and consumer confidence. However, the 50% tariff imposed by the U.S. on certain Indian goods still poses some external pressure, especially for export-driven sectors. Despite that, steady domestic consumption, strong infrastructure spending, and resilience across services are helping maintain momentum.
On the hiring front, the recruitment market in India has remained very cautious over the last two quarters. Hiring managers are not rushing to fill the open positions and are taking more time through extended interview processes to assess culture fit, skills, and long-term readiness. Candidates, on the other hand, are quietly exploring opportunities but are equally selective, preferring stable opportunities over risky jumps – no one wants to be the last one in and first one out.
That said, we have started to see some positive signs from mid-September onwards. Campus hiring has also picked up this financial year. Industries such as Technology, Banking, Financial services, and Energy are also looking strong.
Meanwhile, India’s attractiveness as a hub for Global Capability Centers (GCCs) remains one of its strongest stories. With over 1,800+ GCCs employing more than 2.1 million skilled professionals, India’s combination of technical talent, innovation culture, and government support is making it a preferred destination for multinational companies. This number is expected to double by 2030, with Tier-II cities like Coimbatore, Noida, Jaipur, and Indore seeing strong attraction.
While the first half of the year reflected a wait-and-watch sentiment from both employers and candidates, moving to the second half feels more positive, as businesses are likely to resume critical hiring mandates as budget approvals and new projects roll out. The blend of stable economic growth, renewed hiring energy, and India’s growing strategic importance globally indicates that we’re slowly but surely moving toward a more confident market in the coming quarters.
If you have any questions or would like to continue the conversation around the HR market in India, please contact Gaurav Yadav at gy@elliottscotthr.com.
